This Is How Private Sector Companies Like Rewire Change the World
Now, more than ever before, we have a chance to make a positive impact not only on the general population but also on traditionally deprived populations. I believe that private sector companies play an important role in shaping our society and that is also the vision that drives Rewire.
Imagine a world in which measuring the social impact of a private sector company is equally as important as its fiscal worth. I know what you’re thinking — “we already have these types of companies around the world, they are called NGOs.” Well, you’re not wrong but I am referring to a slightly different concept.
In recent years, we see private sector businesses that strive to positively impact society while seeking to achieve financial success. For these companies, fiscal performance is equally as important as their positive social impact. They operate in accordance with the idea of a “double bottom line,” a concept that was developed at Harvard Business School by Jed Emerson.
Essentially, this concept entails the standard bottom line, which is financial growth, alongside a second bottom line that measures a for-profit business’ performance in terms of positive social impact. Two great examples are companies such as Ben & Jerry’s, whose ideology is to support the communities in which it operates, and MicroGen Biotech, whose goal is to protect our health by reducing heavy metals in crops.
What have you done to benefit mankind today?
Yes, I know, changing the world is more than one company’s job. In 2015 the UN set up the 17 Sustainable Development Goals as a blueprint to achieving a better and more sustainable future for all. These goals were primarily set as an urgent call for action to be taken by all countries. Now don’t get me wrong, governments should incentivize initiatives that comply with these worthy goals. But as I see it, entrepreneurs also share the responsibility to take action.
I previously had the privilege of contributing my two cents to The Fintech Times’ Fintech for Good issue in which I discuss global financial inclusion efforts and how they link to the 10th SDG: Reduced Inequalities. I believe that a social entrepreneurship-based company can change the world for the better all while growing its fiscal worth. The secret is to focus on the individual all while keeping the bigger picture in mind.
At Rewire, we chose to promote one of the most underserved populations around the world — migrants.
The fact that migrants have unusual challenges due to their financial obligations in more than one country is widely known. But when delving into the financial challenges migrants face, one can see how the traditional financial system is actually contributing to the perpetuation of the migrant’s financial status.
If you think about it, the average migrant faces 3–4 financial institutions (back home and in their new home) just to cover their basic financial needs such as holding a bank account or simply paying taxes and bills in both countries. Dealing with various financial institutions that are physically located in more than one country also includes fees for financial services in more than one country. Meaning that at the end of the day, the average migrant not only earns less but also pays more for basic financial services.
Reducing inequalities by promoting underserved populations
Today’s underserved populations can become tomorrow’s mainstream audience if we invest in elevating the underbanked and the underserved. You see, despite their unique financial challenges, the global population of migrants roughly includes 270 million people, who often drive the economies of the countries they come from. The same people who are responsible for 10% to 30% of China, Thailand, India, Nigeria, and the Philippines’ GDP, also fill crucial roles in the countries they migrated to as they work in healthcare, agriculture, hospitality, and IT.
To include migrants in the financial systems we must make cross-border financial services accessible to them, spread our knowledge and assist with financial literacy. In other words, we must comply with the double bottom line principle — which is exactly what Rewire does, much like the incredible ice cream manufacturer and agtech companies mentioned earlier. As part of our effort to reduce inequalities, Rewire is eliminating the barriers to financial inclusion by using innovative technology and providing educational tools accessible in the migrant’s native language.
A one-stop-shop that answers all of the unique cross-border financial needs of migrants is Rewire’s answer to financial inclusion. Services such as cross-border money management, the ability to open a payment account, own a debit card, pay bills, and use a fairly priced remittance service are only a few of the services we are able to offer migrants. At the end of the day, a migrant wants the same things as anyone else — to earn a living, to be able to care for their loved ones, and to grow old peacefully.
Can you imagine what the world would look like when financial inclusion and equal opportunities become reality? Can you imagine what it would look like when private sector companies apply the double bottom line principle? Promoting worthy causes is no longer the sole responsibility of NGOs, it is our collective responsibility and private sector companies need to adjust to a new reality in which their business complements the important work that is usually the forte of the “non-profits.”
Including migrants in the financial systems will not only benefit these individuals but will also benefit everyone else around the world. Moreover, it will help reduce inequalities and make this world a better place. I’m proud to be part of that change.
